3Q and 9M 2014 Financial Results Presentation “Building ... · 03. BUSINESS UPDATES 04. APPENDIX 3 . Key Highlights for 3Q & 9M 2014 4 The Group revenue for 9M 2014 decreased 23.7%

“Building for a better future”

3Q and 9M 2014

Financial Results

Presentation

Disclaimer

2

This presentation has been prepared by Sinarmas Land Ltd. (“SML” or “Company”) for informational purposes, and may

contain projections and forward looking statements that reflect the Company’s current views with respect to future events

and financial performance. These views are based on current assumptions which are subject to various risks and which may

change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the

Company’s assumptions are correct. Actual results may differ materially from those projected. A prospective investor must

make its own independent decision regarding investment in securities.

Opinions expressed herein reflect the judgement of the Company as of the date of this presentation and may be subject to

change without notice if the Company becomes aware of any information, whether specific to the Company, its business, or

in general, which may have a material impact on any such opinions.

The information is current only as of its date and shall not, under any circumstances, create any implication that the

information contained therein is correct as of any time subsequent to the date thereof or that there has been no change in

the financial condition or affairs of SML since such date. This presentation may be updated from time to time and there is no

undertaking by SML to post any such amendments or supplements on this presentation.

The Company will not be responsible for any consequences resulting from the use of this presentation as well as the

reliance upon any opinion or statement contained herein or for any omission.

© Sinarmas Land Ltd. All rights reserved.

01. KEY HIGHLIGHTS 02. FINANCIAL PERFORMANCE

03. BUSINESS UPDATES

04. APPENDIX

3

Key Highlights for 3Q & 9M 2014

4

The Group revenue for 9M 2014 decreased 23.7% to S$642.4 million due to absence of

S$317.3 million sales of land parcel to its joint ventures and associated company for

further development

The Group preserved a healthy financial position with cash and cash equivalent of

S$755.5 million and a net debt to total equity gearing ratio of 2.0%

As at 30 September 2014, investment properties rose by S$135 million to S$671.2 million

mainly due to the acquisition of 10 Great Pulteney Street (”10 GPS”)

Acquired 10 GPS, a freehold prime commercial building strategically located in the hear

of SOHO London, for a total consideration of £57.28 million or S$120.52 million*

Increase stake in BSDE from 49.87% to 51.50% through non-preemptive rights issues

Establishment of a S$1,000,000,000 multicurrency medium term notes Programme with

OCBC Bank and UBS AG

* : Based on exchange rate of £1.00 = S$2.104

01. KEY HIGHLIGHTS

02. FINANCIAL PERFORMANCE 03. BUSINESS UPDATES

04. APPENDIX

5

3Q & 9M 2014 Financial Highlights

6

294.6

370.2

691.7

608.0

455.8

143.3 152.9

55.1% 58.6%

70.2% 72.2% 71.0%

62.7%

73.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

0

200

400

600

800

1000

1200

2011 2012 2013 9M 13 9M 14 3Q 13 3Q 14

534.4

631.3

985.0

841.5

642.4

228.5 208.6

0

200

400

600

800

1000

1200

2011 2012 2013 9M 13 9M 14 3Q 13 3Q 14

Revenue

S$ million

Gross Profit and Gross Profit margin

S$ million

Total revenue in 3Q 2014 decreased 8.7% or

S$19.9 million to S$208.6 million due to lower

sales contribution from PDL Group (“Deltamas”)

as well as its China property division as

development reaches its tail-end

Total revenue in 9M 2014 was lower by 23.7% to

S$642.4 million primarily due to absence of

S$317.3 million sales of land parcel to its joint

ventures and associated company

Paired with higher revenue contribution and

lower cost from both Indonesia and UK divisions,

3Q 2014 gross profit and gross profit margin rose

to S$152.9 million and 73.3% respectively

Despite better gross profit contribution from other

operating activities, 9M 2014 gross profit and

gross profit margin declined to S$455.8 million

and 71.0% respectively due to absence of sales

of land parcel to its joint ventures and associated

company

3Q & 9M 2014 Financial Highlights

7

88.8

112.7

252.5

231.6

140.8

39.3 44.0

0

50

100

150

200

250

300

2011 2012 2013 9M 13 9M 14 3Q 13 3Q 14

EBITDA and EBITDA margin

S$ million

Profit attributable to Owners of the Company

216.9 274.8

556.8 514.9

366.2

104.6 112.9

40.6% 43.5%

56.5%

61.2%

57.0%

45.8%

54.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

0

200

400

600

800

1000

1200

2011 2012 2013 9M 13 9M 14 3Q 13 3Q 14

S$ million

EBITDA and EBITDA margin increased for 3Q

2014 by 7.9% to S$112.9 million and 54.1%

mainly attributable to higher revenue contribution

and lower cost from both Indonesia and UK

divisions

A decreased in EBITDA and EBITDA margin for

9M 2014 was lower by 28.9% to S$366.2 million

and 57.0% primarily due to absence of sales of

land parcel to its joint ventures and associated

company

With higher revenue contribution and lower cost

from Indonesia and UK divisions, 3Q 2014 profit

attributable to owners of the company grew

11.9% to S$44.0 million

In-line with the absence of sales of land parcel to

its joint ventures and associated company, 9M

2014 profit attributable to owners of the company

decreased 39.2% to S$140.1 million

9M 2014 Revenue Breakdown

8

79.0%

13.2%

7.8%

9M 2014 Revenue

Sales of Development Properties and Land

Rental Income

Others

Revenue – Product Breakdown (%)

21.0%

93.4%

2.3%

4.4%

9M 2014 Revenue

Indonesia

China

Others*

Revenue – Geographical Breakdown (%)

* : Other countries include Singapore, Malaysia and United Kingdom

9M 2014 – Financial Snapshot

9

(S$ „000) As at 30 Sep 2014 As at 31 Dec 2013

(Restated)

Assets

Cash and cash equivalents 755,510 816,221

Investment properties 671,182 535,367

Properties held for sale 634,612 547,179

Properties under development for sale 1,459,815 1,446,235

Other assets 764,940 654,655

Total Assets 4,286,059 3,999,657

Liabilities

Borrowings 495,866 329,987

Bond Payables 310,743 308,788

Other liabilities 694,955 757,056

Total Liabilities 1,501,564 1,395,831

Equity

Total Capital and reserves 1,497,639 1,421,298

Non-controlling Interest 1,286,856 1,182,528

Total Equity 2,784,495 2,603,826

Key Financial Ratios

10

0.08 0.09

0.18 0.19

0.11 0.13

0.28 0.29

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

2011 2012 2013 9M 14

Total Debt / Total Assets Total Debt / Total Equity

Debt / Assets and Debt / Equity

(x)

Net Debt / Equity

(%)

Total Debt / EBITDA

(x)

EBITDA1 / Interest Expense

1.28 1.22 1.2

2.2

0.00

0.50

1.00

1.50

2.00

2.50

2011 2012 2013 9M 14

(x)

-19.1%

-15.4%

-2.1%

2.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

2011 2012 2013 9M 14

6.2

12.3

24.1

9.3

0

5

10

15

20

25

30

2011 2012 2013 9M 14Note: 1 Excludes finance income

01. KEY HIGHLIGHTS

02. FINANCIAL PERFORMANCE

03. BUSINESS UPDATES 04. APPENDIX

11

UK Property Division – Acquisition of 2nd

Prime Grade A Office in SOHO London

12

Acquired 10 Great Pulteney Street (”10 GPS”), a freehold prime commercial building in London, for a

total consideration of £57.28 million or S$120.52 million*

Strategically situated in the heart of Soho, a thriving cosmopolitan area and international renowned

office location that has traditionally attracted the entertainment and media industries and major office

occupiers

Comprehensively refurbished in 2000 to provide 44,116 sq ft of Grade A office space and 2,928 sq ft

five-unit residential block arranged over basement, ground and five upper floors

* : Based on exchange rate of £1.00 = S$2.104

China Property Division – Li Shui Jin Yang

(Shenyang)

13

Located in Shenyang, Li Shui Jin Yang (丽水金阳) is an integrated development divided into three

phases comprising of residential apartments, commercial units and a hotel

94% of completed units from Phase 1 and 2 has been sold

Phase 3, which comprises of a 168-room hotel, 20 retail units and 87 residential units, is undergoing

construction and expected to complete in 2015

Phase 1 & 2 Artist Impression: Phase 3

Indonesia Property Division – Indonesia

Convention Exhibition (“ICE”)

14

Located in the main

boulevard of BSD City

Phase 2, ICE is a new

meetings, incentives,

conferences and exhibition

(MICE) destination in

Indonesia

Spanning across a land

area of 22 hectares, ICE

is poised to be the largest

MICE center in Indonesia

upon completion with more

than 100,000 sqm of gross

floor area

ICE shall feature a spacious indoor and exhibition area, divisible convention hall, pre-function lobby for a

wide variety of events including musical concerts, sports tournaments, product launches, etc

Jointly developed between BSDE and Indonesia Kompas Gramedia Group, ICE will be managed

and operated by Deutsche Messe, a leading international trade fair company, from Hannover, Germany

Target to commence operation by end 2014

Indonesia Property Division – AEON Mall

(BSD City)

15

Sitting on 10 hectares of land area in BSD City Phase 2, the AEON Mall (BSD City) will span across

more than 125,000 sqm of retail space, offering many Japanese-related features

Jointly developed between BSDE and AEON, one of the largest Japanese shopping mall developer,

AEON Mall (BSD City) will be the first AEON Mall in Indonesia

With construction currently at the 5th storey, AEON Mall (BSD City) is set to commence operation in

mid of 2015

Indonesia Property Division – NAVA Park

16

Joint development between BSDE and Hongkong Land

Spanning across 68 hectares of land area, NAVA Park is

an integrated premium residential development

consisting of villas, landed houses, low and mid-rise

condominium, commercial units and country club

Commenced pre-sales on 28th October 2014

01. KEY HIGHLIGHTS

02. FINANCIAL PERFORMANCE

03. BUSINESS UPDATES

04. APPENDIX

17

9M 2014 versus 9M 2013 Consolidated Income Statement

18

(S$ „000) 9M 2014 9M 2013 Change %

Revenue 642,353 841,535 (23.7)

Cost of Sales (186,546) (233,526) (20.1)

Gross Profit 455,807 608,009 (25.0)

Operating Expenses

Selling Expenses (39,471) (37,738) 4.6

General and administrative expenses (102,753) (100,890) 1.8

Operating profit 313,583 469,381 (33.2)

Finance costs (39,457) (9,504) 315.2

Others 48,425 21,402 126.3

Profit before income tax 322,551 481,279 (33.0)

Income tax (36,788) (50,023) (26.5)

Profit for the period 285,763 431,256 (33.7)

Attributable to:

Owners of the Company 140,808 231,604 (39.2)

Non-controlling interests 144,955 199,652 (27.4)

9M 2014 vs 9M 2013

Consolidated Income Statement

3Q 2014 versus 3Q 2013 Consolidated Income Statement

19

(S$ „000) 3Q 2014 3Q 2013 Change %

Revenue 208,582 228,534 (8.7)

Cost of Sales (55,705) (85,282) (34.7)

Gross Profit 152,877 143,252 6.7

Operating Expenses

Selling Expenses (14,953) (14,614) 2.3

General and administrative expenses (39,476) (40,098) (1.6)

Operating profit 98,448 88,540 11.2

Finance costs (13,639) (11,193) 21.9

Others 19,865 47,340 (58.0)

Profit before income tax 104,674 124,687 (16.1)

Income tax (13,368) (17,180) (22.2)

Profit for the period 91,306 107,507 (15.1)

Attributable to:

Owners of the Company 43,998 39,324 11.9

Non-controlling interests 47,308 68,183 (30.6)

3Q 2014 vs 3Q 2013

Consolidated Income Statement

Statement of Financial Position

20

(S$ „000) As at 30 Sep 2014 As at 31 Dec 2013 (Restated)

Current Assets

Cash and cash equivalents 755,510 816,221

Properties held for sale 634,612 547,179

Other current assets 324,797 254,242

Total Current Assets 1,714,919 1,617,642

Non-Current Assets

Associated companies 199,668 195,822

Joint ventures 90,794 65,512

Properties under development for sale 1,459,815 1,446,235

Investment properties 671,182 535,367

Property, plant and equipment 144,241 129,568

Other non-current assets 5,440 9,511

Total Non-Current Assets 2,571,140 2,382,015

Total Assets 4,286,059 3,999,657

Short-term borrowings 152,132 135,697

Short-term payables and liabilities 544,536 504,897

Bonds payables 310,743 308,788

Long-term borrowings 343,734 194,290

Long-term payables 143,924 227,362

Others 6,495 24,797

Total Liabilities 1,501,564 1,395,831

Total Capital and reserves 1,497,639 1,421,298

Non-controlling Interest 1,286,856 1,182,528

Total Equity 2,784,495 2,603,826

Total Liabilities and Equity 4,286,059 3,999,657

Statement of Financial Position

21

Ronald Ng Investor Relations Manager

Email: [email protected]

Tel: (65) 6885 7746

Ferdinand Sadeli Executive Director and Chief Financial Officer

Email: [email protected]

Tel: (62) 21 5036 8368 Ext 12836

Thank You Robin Ng Executive Director

Email: [email protected]

Tel: (65) 6590 0884